BARCELONA--(BUSINESS WIRE)--The GSMA today unveiled its seventh annual ‘State of the Industry Report
on Mobile Money’, offering a current snapshot of the mobile money
landscape and highlighting the impact that greater financial inclusion
has on lives, economies and innovation. The report provides the only
comprehensive picture of mobile money around the globe. Today, with more
than 690 million registered accounts in over 90 countries, mobile money
has evolved into the leading payment platform for the digital economy in
many emerging markets. The report shows that, in 2017, the mobile money
industry processed transactions worth a billion dollars a day,
generating direct revenues of over $2.4 billion.

“As the Sustainable Development Goals (SDGs) enter their third year,
mobile technology is proving to be an essential tool for delivering
these global goals with increased connectivity and innovative services
enabling more inclusive communities,” said Mats Granryd, Director
General, GSMA. “Mobile money remains a central part of this story,
contributing to 13 of the 17 SDGs, enabling access to essential services
like health and education, empowering women with employment
opportunities and reducing poverty by offering life-enhancing financial
services, often for the first time.”

New Trends

The report shows a number of new trends in mobile money in 2017,
including the accelerated growth of bank-to-wallet interoperability, the
growing adoption of smartphones, the proliferation of fintech companies,
the digitisation of new sectors of the economy, and renewed efforts by
companies and governments to reach the most vulnerable and underserved.
Sub-Saharan Africa has long been the epicentre of mobile money and
growth in this region shows no sign of slowing, but as the industry has
matured, mobile money has also gained traction in other parts of the
world. In 2017, for the first time, growth of the industry was led by
regions other than Africa. With 47 per cent year-on-year growth, South
Asia was the fastest-growing region in terms of registered accounts and
now represents 34 per cent of registered accounts globally.

Mobile Money Reaching Scale

A steady increase in active customers, transactions and direct revenue
are signs that mobile money is evolving into a sustainable industry and
represents an important driver of economic growth in developing markets,
particularly through formalising payments, increasing transparency and
boosting GDP. With mobile money now available in over 90 countries,
including three-quarters of low- and lower-middle-income countries, it
has become the leading payment platform for a digital economy in many
emerging markets.

The research further shows:

Strong growth in customer registrations in 2017 led to the addition of
over 136 million new registered accounts, bringing the global total to
690 million mobile money accounts, a 25 per cent increase from 2016;

A growing number of mobile money services are seeing the proportion of
their customer base regularly using their service increase to over 50
per cent, especially where providers have a strong distribution
network, enabling regulation and rely more on an account-based
business model;

More funds are entering and leaving the mobile money ecosystem in
digital form; bulk disbursements, bill payments and bank-to-wallet
transactions have been the main drivers. In 2017, nearly 25 per cent
of incoming funds were digital, compared to nearly 12 per cent in
2012; and

Many successful providers are decreasing the net cost of the agent
network – the cost of managing an agent network can account for more
than half of total revenues, so this trend can significantly affect
investment incentives.

Future Considerations

As a burgeoning fintech community positions itself as the gateway of
choice for new digital services, a number of traditional tools will
remain relevant. The persistence of the cash economy in emerging markets
means that complex distribution networks will continue to be crucial for
digital services to interface with physical lives. In a business that
relies deeply on trust, the role of longstanding brands and the
understanding of local context will also remain integral to reaching
people outside of the formal system. The policy and regulatory
environment will play a determinant role in establishing incentives and
setting national ambitions. As regulators confront questions around data
protection, business models, and more, the policy end game of greater
inclusion must remain at the fore. Providers able to effectively inform
and support this process will be more likely to thrive.

Granryd added, “In an increasingly turbulent world, mobile money is also
providing a lifeline, with digital humanitarian cash transfers and
affordable international remittances giving refugees safe and convenient
ways to meet pressing needs. We are also continuing to focus on
narrowing the gender gap in access to financial services through
programmes such as the Connected Women Commitment initiative.”

The 2018 State of the Industry Report on Mobile Money, as well as
further information on the GSMA’s Mobile Money Programme, is available
at: www.gsma.com/mobilemoney.

-ENDS-

Note to editors:

The State of the Industry Report on Mobile Money draws on the results of
the annual GSMA Global Adoption Survey of Mobile Financial Services and
data from the GSMA Mobile Money Deployment Tracker, and provides
insights on mobile money performance from the GSMA’s engagement with the
industry.

About the GSMA

The GSMA represents the interests of mobile operators worldwide, uniting
nearly 800 operators with more than 300 companies in the broader mobile
ecosystem, including handset and device makers, software companies,
equipment providers and internet companies, as well as organisations in
adjacent industry sectors. The GSMA also produces industry-leading
events such as Mobile World Congress, Mobile World Congress Shanghai,
Mobile World Congress Americas and the Mobile 360 Series of conferences.

For more information, please visit the GSMA corporate website at www.gsma.com.
Follow the GSMA on Twitter: @GSMA.